U.S. West Texas Intermediate, the U.S. benchmark crude oil prices managed to keep its head above water on Thursday as market bulls remain in a tight pack on the conviction that Russia and OPEC will deepen production cuts to temper any worsening of crude demand from a new spike in deaths and infections from China’s Covid-19 (coronavirus) epidemic.
On Thursday as the Trump administration changed its tune on China’s handling of the coronavirus epidemic.
Top economic official Larry Kudlow stated the U.S. is “disappointed” with how events were playing out.
China said it confirmed 15,152 new cases and 254 additional deaths. That brings the country’s total death toll to 1,367 as the number of people infected jumped close to 60,000, according to the Chinese government.
Both benchmarks (WTI and Brent) have risen roughly +4% each over the past three sessions.
WTI bulls are counting on OPEC+, which includes the original 13 member of the cartel and 10 allies led by Russia, to agree to a 600,000-barrels-per-day cut in production to offset some of the lost demand in crude.
At present, the bullish signs support a potential target of $53.80-90, with the immediate target viewed to $52.45-55.
However, the upside view would be negated, if prices close under $49.00, which in turn would leave a short-term neutral view.